1.Limited Partnership Units
Limited partnership units represent interests in a partnership consisting of a general partner, who manages the partnership, and limited partners, who provide the investment capital. The liability of limited partners is generally limited to their initial investment, provided that they do not become involved in management. Limited partnerships will typically invest in a specific industry sector (such as real estate or oil and gas) and often provide for some tax benefits to ‘flow through' from the partnership to the limited partners.
Trust units represent interests in the net assets and net income of a trust. These trusts are generally set up to invest in assets such as real property ( real estate investment trusts ), royalties from oil and gas production ( royalty trusts ) or the income generated by one or more businesses ( income trusts ). Many are designed to offer tax advantages to investors.